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India to Advocate for Increased Exports of Pharmaceuticals and Shrimp to the US

Asia Manufacturing Review Team | Thursday, 11 January 2024

 Asia Manufacturing Review Team

The government is set to present a robust argument for expediting inspections and audits by the US Food and Drug Administration (USFDA) on Indian pharmaceutical companies and will also advocate for the lifting of the ban on exporting wild-caught shrimp to the United States during the India-US Trade Policy Forum meeting scheduled for Friday.

Sources revealed that, in a working group meeting preceding the visit of US Trade Representative Katherine Tai to the Trade Policy Forum, India raised concerns about export control regulations for high-tech products and technologies.

Additionally, the Indian delegation plans to address the reinstatement of the Generalized System of Preferences (GSP) status for India during the meeting. The restoration of GSP status would enhance access for Indian products in the US market. Although Indian exports benefited from GSP until 2019, when the Trump administration withdrew the facility, efforts for its reinstatement have been ongoing. Despite the Biden administration's attempts to mend trade relations, the GSP benefit has not been reinstated thus far, and it is expected to be a significant topic of discussion during Katherine Tai's meeting with Commerce and Industry Minister Piyush Goyal.

Given that the US is India's largest trading partner with bilateral goods trade exceeding $69 billion during April-October, resolving trade-related issues is crucial. In recent years, both countries have worked towards eliminating various trade impediments.

For the Indian government, positioning the country as a global pharmacy is a key objective. Hence, expediting clearances by the USFDA for Indian pharmaceutical companies to sell medicines in the US market is of paramount importance. The working group meeting addressed the backlog created by the halt in USFDA inspections post-Covid and proposed the option of digital or physical inspections, considering the significance of the US market for Indian pharmaceutical exports. The issue of the US export ban on Indian wild-caught shrimp is also expected to be prominently discussed during the Trade Policy Forum meeting